P resident Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery in Naira. This announcement was made on Monday by Bayo Onanuga, Special Adviser to the President on Information and Publicity, via X.
Onanuga stated, "To ensure the stability of the pump price of refined fuel and the Dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira."
Dangote Refinery currently requires 15 cargoes of crude oil annually, amounting to $13.5 billion. The NNPC has committed to supplying four of these cargoes. The Federal Executive Council has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using Dangote Refinery as a pilot project. The exchange rate will be fixed for the duration of this transaction.
Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPCL. This innovative intervention is expected to eliminate the need for international letters of credit and save the country billions of dollars currently spent on importing refined fuel.
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